What is better for my business recourse or non-recourse factoring?
That depends. Whether you choose recourse or non-recourse factoring will be dependent on how comfortable you are with risk.
Non-Recourse Factoring: Higher fee option: If you want a worry-free no risk transaction, and you're willing to meet stricter criteria and pay a higher cost to do so, Non-Recourse Factoring may be the invoice financing solution for you. With non-recourse factoring, if your customer doesn't pay, the factoring company absorbs the cost.
Recourse Factoring: Lower fee option: If you have credit worthy customers and are comfortable that they will pay their invoices, Recourse Factoring is the most cost effective choice. The low factoring rate is based on perceived risk. If, due to unforeseen complications, your customer doesn't pay their invoice within 90 days, you become responsible for full repayment of the invoice amount. However, if you're confident that your client will pay, Recourse Factoring can be the perfect solution for you.